Samsung, who have “apparently confirmed” (although I read it personally as “not denying”) the Galaxy SIII, are on a roll. Net profit at Samsung Electronics is up to 4 trillion won, which is about £2.3 billion. Althought net income for 2011 was down slightly, Samsung saw the Galaxy products push revenue up by nearly 40%.
It comes as more people access the web via mobile devices. Apple are obviously more than aware of how successful Samsung tablets and smartphones are becoming, hitting them with several lawsuits in recent months.
Link – Samsung Press
Samsung Electronics Announces Fourth Quarter & FY 2011 Results
– Achieves full year net income of 13.73 trillion won on sales of 165 trillion won
– 4Q consolidated revenues reach 47.3 trillion won, operating profit of 5.3 trillion won
SEOUL, Korea – January 27, 2012 – Samsung Electronics Co., Ltd. today announced revenues of 47.3 trillion Korean won on a consolidated basis for the fourth quarter ended December 31, 2011, a 13-percent increase year-on-year. For the quarter, the company posted consolidated operating profit of 5.3 trillion won, representing a 79-percent increase year-on-year. Consolidated net profit for the quarter was 4 trillion won.
In its earnings guidance disclosed on January 6, Samsung estimated fourth-quarter consolidated revenues would reach approximately 47 trillion won with consolidated operating profit of approximately 5.2 trillion won.
The fourth quarter results brought Samsung’s full year 2011 revenue to an all-time high of 165 trillion won, up 7 percent from the previous year. Net income registered 13.73 trillion won, down 15 percent compared with 2010, while operating profit was 16.25 trillion won, a 6-percent on-year decline.
Highlighting the quarterly performance, the Telecommunications businesses reached record quarterly earnings of 17.82 trillion won, up 52 percent from the previous year, with growth mainly driven by strong sales of Samsung’s GALAXY S II and GALAXY Note. Operating profit for the businesses also hit a record 2.64 trillion won on-quarter.
“Despite intensified competition amid the global economic slowdown, our Telecommunications businesses continued to post solid earnings with an enhanced line-up of high-end smartphones, resulting in higher average selling price (ASP). Moreover, improved profitability and earnings growth of our Set businesses, including smartphones and flat panel TVs led to our company’s strong earnings,” said Robert Yi, Senior Vice President and Head of Investor Relations.
Yi also attributed the solid performance to Samsung’s differentiated technology, cost competitiveness, targeted marketing activities and supply chain management (SCM) capabilities throughout all business units.
Samsung’s reinforced lineup of LED TVs, including premium models for advanced markets and region-specific models for emerging markets, has also improved quarter-on-quarter sales.
On the components business side, the Semiconductor Business saw demand for PC DRAM remain weak but growth of specialty products such as server and mobile DRAM was constant due to the rising demand for smartphones and tablet PCs. Although profitability for memory chips and LCD declined, rapid growth in system LSI and OLED panels was a promising signal for future growth.